LA-Z-BOY TO INVEST IN DAYTON, TN MANUFACTURING CAMPUS

MONROE, Mich., February 2, 2017—La-Z-Boy Incorporated (NYSE: LZB) today announced it plans

to invest approximately $26 million over a three-year period in its largest U.S. manufacturing facility,

located in Dayton, Tennessee. The 1.2 million square-foot Dayton campus, which began operations in

1973 and employs approximately 1,400 people, is the only La-Z-Boy branded plant that manufactures

furniture in all three upholstery categories — recliners, motion sofas and stationary upholstery, making

nearly 90% of the various frame styles in the company’s manufactured-branded product line. The

Dayton plant services the northeast, southeast and Midwestern portions of the country. The campus

includes a small research and development operation and supply centers for metal stamping and wood

fabrication that provide material for the company’s four additional U.S. La-Z-Boy branded

manufacturing sites.

 

The scope of the project, which will run in two sequential phases, includes the construction of a new

state-of-the-art Innovation Center, followed by various upgrades and renovations throughout the

upholstery plant and supply centers. The new 70,000 square-foot facility will replace an existing

structure on site and will house a model shop, technology center, test lab and three-dimensional

printing lab. It will be home to approximately 70 to 75 employees. The company plans to break

ground on The La-Z-Boy Innovation Center in February 2017, with the project expected to run for

approximately 14 months. Subsequently, the company will begin an approximately 12-18 month

renovation project throughout the Dayton campus relating primarily to modernization, technology and

productivity enhancements.

 

Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy Incorporated, said,

“Our company was founded with an innovative spirit almost 90 years ago and that spirit remains at the

forefront of everything we do today. With the Dayton operation our largest facility, it is imperative

that we make the appropriate investment to maintain a high innovation quotient throughout the

business while making the plant as safe, productive and efficient as possible. We are making this

investment over a long period of time, in two distinct phases, and will be methodical throughout the

process to ensure there is no disruption of service to our customer base and that we continue to deliver

on our brand promise to the consumer – custom furniture delivered in four weeks or less – highlighting

La-Z-Boy’s unique competitive advantage within the industry.”

 

Darrow continued, “Having a new modern Innovation Center that provides our team of engineers and

design professionals with a collaborative work environment is critical as we bring exciting new

products to market. Additionally, with a strong commitment to sustainability and a responsibility to act as an environmental steward, we intend to construct a LEED-certified building utilizing recognized

sustainable building practices.”

 

Darrell Edwards, Senior Vice President and Chief Supply Chain Officer, said, “The Dayton upholstery

plant is our largest facility, responsible for nearly $400 million of our annual revenue. Ongoing

investment across our manufacturing operations is essential as we continue to enhance plant

productivity and efficiencies. Additionally, we pride ourselves in maintaining a safe work

environment and many of the upgrades we are making will further improve the practices and

safeguards already in place. La-Z-Boy is a leader in the motion furniture field, with the brand’s

heritage steeped in bringing revolutionary products to market. This new Innovation Center will help us

to attract and recruit the best talent to our team as we seek to expand our business.”

 

The final phase of the Dayton campus refresh will include the construction of a new transportation

terminal. Darrow said, “We would like to thank the State of Tennessee and the City of Dayton for

their cooperation, support and encouragement on this important series of projects. We have had an

almost 45-year-long history in Tennessee and we look forward to many more years of production in

Dayton. We appreciate the various incentives we are receiving at the state and local level to assist us

in completing this work.”

 

Additional information is available Here